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Market Update

Nifty : 24,715.05 +135.45 (+0.55%)   

Sensex : 80,567.71  +409.83 (+0.51%)

*  Equity benchmark Sensex advanced over 400 points while Nifty ended above the 24,700 mark, supported by strong buying in metal, financial, auto, and pharma stocks ahead of the rollout of key GST reforms. Sentiment was further lifted as India’s services PMI hit a 15-year high above 60 in August, while the manufacturing PMI climbed to a 17-year high above 59, highlighting resilient demand in the world’s fastest-growing major economy. Additionally, Q1 GDP growth came in at a five-quarter high of 7.8%, and investors remained optimistic about potential GST measures to bolster growth, especially after the U.S. imposed a 50% tariff on Indian goods.

*  At close, the Sensex stood at 80,567, up 409 points or 0.50%, while the Nifty gained 137 points or 0.50% to finish at 24,716. Market breadth remained firm with an advancedecline ratio of 2:1 on the NSE.

*  Metal stocks led the rally, with the Nifty Metal index climbing 3% as National Aluminum, Hindalco, Tata Steel, Jindal Steel, and JSW Steel gained 2–5%. Auto counters also surged on the back of robust August two-wheeler sales and expectations of GST relief, pushing M&M, Tata Motors, Bajaj Auto, and TVS Motor up 1–2%. Pharma stocks saw renewed buying interest, with the Nifty Pharma index advancing over 1%, led by Glenmark Pharma, Lupin, Ajanta Pharma, and Granules India.

Technical Outlook:

*  Nifty index opened positive and after the initial slip in the first hour, it took support near its previous day’s lower band and scaled upwards for the rest of the day. There were multiple attempts to cross 24700 zones and it finally closed above the same with gains of more than 140 points.

*  It formed a bullish candle on daily frame with a longer lower shadow indicating support based buying is intact. Now it has hold above 24630 zones for an up move towards 24850 then 25000 zones while supports can be seen at 24500 and 24442 zones.

Derivative Outlook:

*  Nifty future closed positive with gains of 0.52% at 24820 levels. Positive setup seen in Tata Steel, SAIL, Jindal Steel, Glenmark, JSW Steel, National Aluminium, Hindalco, Muthoot Finance, Kaynes Technology and Fortis while weakness in Phoenix Mills, Indus tower, LTI Mindtree, PG Electroplast, Infosys, Persistent system, Wipro, and BDL.

*  On option front, Maximum Call OI is at 25000 then 24700 strike while Maximum Put OI is at 24500 then 24600 strike. Call writing is seen at 24700 then 25000 strike while Put writing is seen at 24500 then 24600 strike. Option data suggests a broader trading range in between 24200 to 25200 zones while an immediate range between 24500 to 25000 levels.

Global Market Update

*  European Market - European stocks rebounded after bonds globally sold off Tuesday on worries about fiscal deficits in developed markets.The mining and consumer sectors outperformed, while insurance and media shares were among the biggest laggards. Both Germany and France Index gain 0.5% each.

*  Asian Market - Asian shares headed for a second day of declines, weighed by those in Japan due to domestic political uncertainty and weakness in regional chip-making stocks.

*  US Data - Factory Orders and MBA Mortgage Application.

*  Commodity - Oil steadied after closing at the highest in a month as investors weighed geopolitical risks, including a potential escalation of US sanctions on Russia, in the run-up to an OPEC+ meeting on supply. Benchmark Brent traded just shy of $69 a barrel.

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